Case Memo: Zara Fast Fashion 1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Indeed comparing the financial performance of Inditex with the key competitors‚ Inditex was the most profitable company in terms of ROIC. In terms of revenues‚ income and size‚ H&M shows that it is the most interesting to compare. Inditex has a store number
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ZARA: IT For Fast Fashion 1. Is Zara’s business model scalable ? No‚ Zara’s business model is not scalable Reasons: • • • • Though Zara is able to do well in a dynamic market‚ most of the sales of Zara come from Spain (46%) and from women’s segment (73.3%). Hence it becomes very difficult for Zara to scale it up to other countries and other segments. Zara follows decentralized model where store managers have lot a of power – It is very difficult to find such efficient people once we they scale
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Executive Summary Spanish Inditex’s most successful retail clothing store Zara is known all across the world for its trendy apparel (Mcafee‚ Dessain‚ & Sjoman‚ 2004). The company has been very successful throughout the years but management has recently decided that the IT infrastructure may need updating. The store currently runs off of a POS system supported by DOS‚ which has not been supported by Microsoft for several years (Ferdows‚ Lewis‚ & Machuca‚ 2004). The POS system has been working flawlessly
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Fast Zara‚ Fast Fashion Introduction Everyone‚ no matter youngsters or middle-aged mothers‚ love to buy clothes and keep updated on latest fashion trend. In the past‚ people could only consume western styles clothing if they are rich enough to go shopping by travelling in European countries or able to afford expensive air mail to send the consumed western clothes back from overseas. However‚ it took a period of time and the fashionable clothing may become “old” at the time received. As the information
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Case Analysis 1: Zara IT for Fast Fashion 1.) After analyzing the case Zara: IT for Fast Fashion and reviewing the company’s operational strategies‚ we can identify both positive and negative aspects within the organization. Major contributors to the company’s success include: a fined tuned value chain system; lean manufacturing‚ design and distribution; the ability read target markets and predict market trends. Conversely the most significant issues identified in the case include: (1) Poor IT
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Part 1: Executive Summary The current POS system has shown to be successful for Zara‚ however‚ Zara’s IT strategy does not reflect the strategic approach its supply chain has. As Zara’s supply chain is designed to be ahead of its competitors‚ its IT system has fallen behind the crowd. Zara has continued to upgrade its PDA devices but not its technological infrastructure in which it has built its success on. As the head of IT for Inditex I need your‚ Bruno Sanchez’s‚ serious consideration as Inditex’s
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of Spain is one of the world ’s fastest growing clothing retailer that designs‚ produces and sells apparel and fashion accessories through 1‚284 stores around the world under many brand names. Zara is an apparel chain owned at operated by the Inditex. It specializes in fast fashion and offers women ’s‚ men ’s and children ’s fashions at affordable prices. This report analyzes the case Zara: Fast Fashion and the problems associated. The report covers the detailed study of Zara ’s:•Situational Analysis
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identify the trends and meet the demand with the help of its autonomously organized structure and its effective value chain systems. The present system followed by Zara has been very effective and very easy to maintain‚ which as a result has persuaded the company to continue without any change in the present system so far. The problem that Zara faces right now is that the system that they use‚ P-O-S (Point of Sale terminals)‚ runs on DOS which Microsoft does not support anymore and any hardware change
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which upstream structure was fragmented‚ locally owned‚ dispersed‚ and often tiered production whereas downstream structure was relatively concentrated intermediaries. The industry was coordinated and dominated by downstream intermediaries like retailers and branded marketers. A short summary of the apparel industry characteristics was as follows: Production: Very fragmented apparel production. Developing countries had an unusually large share‚ about one half in total exports due to cheaper labor
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Case: “Zara: IT for Fast Fashion” Student ID: U00235538 Issue Zara‚ the flagship chain of Spanish based holding company Inditex‚ has grown to great prominence in the international retail fashion industry. It has done so by advantage in recognizing and responding to changing fashion. Recognizing and quickly responding to the changes in fashion trends is largely achieved through a collaborative system of store managers and mid-management level commercials. The exponential growth of Zara
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